Financial Performance - The company's operating revenue for 2020 was approximately RMB 347.50 million, representing an increase of 11.09% compared to RMB 312.81 million in 2019[21]. - The net profit attributable to shareholders for 2020 was approximately RMB 104.50 million, a decrease of 5.11% from RMB 110.13 million in 2019[22]. - The net cash flow from operating activities increased by 26.20% to approximately RMB 54.69 million, compared to RMB 43.34 million in 2019[22]. - The total assets at the end of 2020 were approximately RMB 632.73 million, reflecting a growth of 6.28% from RMB 595.32 million at the end of 2019[22]. - The net assets attributable to shareholders increased by 13.61% to approximately RMB 534.28 million, compared to RMB 470.28 million at the end of 2019[22]. - The basic earnings per share for 2020 were RMB 1.29, down 5.15% from RMB 1.36 in 2019[23]. - The weighted average return on equity decreased to 20.80% in 2020, down from 25.29% in 2019, a reduction of 4.49 percentage points[23]. - The company achieved operating revenue of ¥347,499,597.89, representing an increase of 11.09% compared to the previous year[55]. - The net profit attributable to shareholders was ¥104,497,805.54, a decrease of 5.11% year-on-year[55]. - Total assets reached ¥632,731,107.62, up 6.28% from the end of the previous period[55]. Cash Flow and Investments - The net cash flow from operating activities was ¥54,694,685.41, an increase of 26.20% year-on-year[57]. - The company's cash flow from investment activities increased by 157.02%, primarily due to the recovery of previous investment products[67]. - As of the end of the reporting period, cash and cash equivalents increased by 79.11% to ¥113.56 million compared to the previous year[70]. - The company has engaged in entrusted wealth management with a total amount of CNY 50,000,000 in structured deposits and CNY 307,000,000 in principal-protected floating income financial products[140]. - The annualized yield for a specific entrusted financial management product was 3.45%, resulting in an actual return of CNY 535,931.51[140]. Research and Development - The company invested ¥19,502,500.98 in R&D, a decrease of 7.45% compared to the previous year[57]. - The company focuses on R&D for rail transit vehicle components, continuously optimizing product types and production processes[30]. - The company has established a dedicated R&D team of 44 members, accounting for 13.29% of total employees[52]. - The company emphasizes innovation and has established a robust R&D innovation system, collaborating with universities and research institutions[41]. - The company has developed advanced products with independent intellectual property rights, such as the intelligent control sand-spraying system, which has significant market potential[40]. Market Position and Strategy - The company has maintained long-term partnerships with major manufacturers such as CRRC Qingdao and Beijing Subway, enhancing its market position[30]. - The production model is order-oriented, allowing for customized production based on specific customer requirements[32]. - The sales strategy involves direct sales through competitive bidding and negotiations, ensuring a robust order acquisition process[34]. - The company has achieved multiple international certifications, enhancing its credibility and marketability in the rail transit sector[30]. - The company has developed multiple rail transit vehicle supporting product series, including lightweight air ducts and intelligent control sand-spraying systems, enhancing product competitiveness[39]. Risks and Challenges - The company has outlined potential risks in its future development strategy, emphasizing the need for investors to be aware of investment risks[6]. - The company recognizes potential policy risks that could impact the railway transportation industry and its operations[83]. - The company faces risks related to the approval process for new rail transit construction projects, which could impact investment and subsequently affect the rail transit equipment manufacturing industry[84]. - The company is exposed to the risk of increased market competition as the rail transit equipment industry continues to attract new entrants due to favorable policies and strong market demand[86]. - The company relies heavily on a concentrated customer base, primarily state-owned enterprises, which poses a risk if these customers opt for centralized procurement methods[85]. Shareholder and Governance - The company plans to distribute a cash dividend of RMB 4 per 10 shares, totaling RMB 43.20 million, subject to shareholder approval[5]. - The actual controller of the company, Wang Jianqun, and his spouse Liu Ying hold 93.96% of the shares, which will decrease to 70.47% after the planned issuance of 27 million shares, maintaining absolute control[101]. - The company has a cash dividend policy that balances shareholder needs with long-term sustainable development[104]. - The company has established a complete production, supply, and sales system to minimize related party transactions[126]. - The company has a dedicated management system to prevent the controlling shareholder from occupying company funds, ensuring strict monitoring of fund flows[126]. Employee and Management Structure - The total number of employees in the parent company is 321, with a combined total of 331 employees including major subsidiaries[170]. - The professional composition includes 218 production personnel, 21 sales personnel, 44 technical personnel, 8 financial personnel, and 40 administrative personnel[170]. - The total remuneration for all directors, supervisors, and senior management is 5.1638 million[167]. - The company adheres to a "performance first, fairness considered" principle in its compensation policy, linking employee performance to bonuses to enhance motivation[171]. - The company has established a sound governance structure, with no significant violations or deficiencies reported during the reporting period[174]. Financial Statements and Audits - The company's financial statements for the year ended December 31, 2020, were audited and found to fairly reflect its financial position and operating results[183]. - The internal control audit conducted by Yongcheng Accounting Firm confirmed that the company maintained effective financial reporting internal controls as of December 31, 2020[179]. - The company is responsible for ensuring the financial statements are free from material misstatement due to fraud or error[186]. - The management is tasked with evaluating the company's ability to continue as a going concern[188].

Financial Performance - The company's operating revenue for 2020 was RMB 347,499,597.89, an increase of 11.09% compared to RMB 312,808,137.56 in 2019[21]. - The net profit attributable to shareholders for 2020 was RMB 104,497,805.54, a decrease of 5.11% from RMB 110,129,209.30 in 2019[22]. - The net cash flow from operating activities increased by 26.20% to RMB 54,694,685.41 in 2020, compared to RMB 43,339,482.25 in 2019[22]. - The total assets at the end of 2020 were RMB 632,731,107.62, reflecting a growth of 6.28% from RMB 595,322,369.36 at the end of 2019[22]. - The net assets attributable to shareholders increased by 13.61% to RMB 534,278,726.58 at the end of 2020, compared to RMB 470,280,921.04 at the end of 2019[22]. - The basic earnings per share for 2020 was RMB 1.29, down 5.15% from RMB 1.36 in 2019[23]. - The weighted average return on equity decreased to 20.80% in 2020 from 25.29% in 2019, a decline of 4.49 percentage points[23]. Cash Dividend and Shareholder Returns - The company plans to distribute a cash dividend of RMB 4 per 10 shares, totaling RMB 43.2 million, subject to shareholder approval[5]. - The net profit attributable to shareholders for the year 2020 was CNY 104,497,805.54, with a total distributable profit of CNY 313,821,868.20[105]. - The proposed cash dividend for 2020 is CNY 4 per 10 shares, totaling CNY 43,200,000.00, which represents 41.34% of the net profit attributable to shareholders[105]. - The cash dividend amount for 2019 was CNY 40,500,000.00, which accounted for 36.77% of the net profit[108]. - The cash dividend amount for 2018 was also CNY 40,500,000.00, representing 38.22% of the net profit[108]. - The company has established a cash dividend policy to balance shareholder interests with long-term sustainable development needs[104]. Operational Efficiency and Market Position - The company has maintained long-term partnerships with major manufacturers such as CRRC Qingdao and Beijing Subway, ensuring a stable customer base[30]. - The company focuses on R&D for rail transit vehicle components, with products certified by multiple international quality management systems[30]. - The production model is order-oriented, allowing for customized production based on specific customer requirements, enhancing flexibility[32]. - The sales strategy involves direct sales through competitive bidding and negotiations, ensuring a proactive approach to securing contracts[34]. - The company has successfully expanded its market presence, with products used in various domestic and international metro systems, including cities in Turkey and India[30]. - The company has established a comprehensive customer demand response mechanism, ensuring high efficiency in meeting diverse customer needs[46]. Research and Development - The company invested ¥19,502,500.98 in R&D, a decrease of 7.45% compared to the previous year[57]. - The company holds 47 various patents and has 33 invention patents pending, showcasing its strong R&D capabilities[42]. - The company focuses on technological innovation, continuously upgrading products to meet the personalized needs of downstream manufacturers[41]. - The company has developed advanced products such as the obstacle and derailment detection system, filling domestic technical gaps and having significant market potential[40]. - The company has a dedicated R&D team of 44 members, accounting for 13.29% of total employees[52]. Risk Factors - The company has outlined potential risks in its future development strategies, urging investors to remain aware of investment risks[6]. - The company acknowledges potential risks from changes in national industrial policies that could impact the railway transportation industry and its demand for equipment[83]. - The company is exposed to risks from a high concentration of customers, as major clients are primarily state-owned enterprises, which could adversely affect operational performance if procurement methods change[85]. - The company faces risks from fluctuations in raw material prices, which constitute a significant portion of production costs, potentially affecting profitability[91]. - The company faces risks related to the approval process for new rail transit construction projects, which could impact investment and operational performance if approvals are tightened[84]. Employee and Management Structure - The total number of employees in the parent company is 321, with a combined total of 331 employees including major subsidiaries[170]. - The professional composition includes 218 production personnel, 21 sales personnel, 44 technical personnel, 8 financial personnel, and 40 administrative personnel[170]. - The total remuneration for Wang Jianqun during the reporting period was 1.1673 million yuan[163]. - Liu Ying's total remuneration for the reporting period was 582,300 yuan[163]. - The total remuneration for all directors, supervisors, and senior management is 5.1638 million[167]. Governance and Compliance - The company has established a sound governance structure, with no significant legal violations or governance deficiencies reported during the reporting period[174]. - The board of directors and supervisory board operated in compliance with relevant laws and regulations, ensuring effective decision-making processes[175]. - The internal control audit conducted by Yongcheng Accounting Firm confirmed that the company maintained effective financial reporting internal controls as of December 31, 2020[179]. - The company has not reported any significant internal control deficiencies during the reporting period[179]. - The company has committed to ensuring that related party transactions are conducted fairly and transparently[126]. Market Trends and Future Outlook - The global railway market size was €183 billion (approximately ¥1,437.9 billion) in 2018, with an expected annual growth rate of 2.8% in the coming years[75]. - China's high-speed railway operating mileage reached 35,742 kilometers by January 2020, accounting for 68.22% of the world's total[75]. - The company aims to strengthen its existing business segments while promoting new products such as intelligent control sand-spraying systems and obstacle detection systems[79]. - Future guidance suggests a projected revenue increase of 46.39% for the upcoming fiscal year, reflecting optimistic market conditions[164]. - The company is exploring potential mergers and acquisitions to bolster its competitive position in the industry[164].